Italian serial killer captured in France

A serial killer who was granted leave from prison in Italy has been recaptured in France. Source: AAP

ITALY'S justice minister says a serial killer who failed to return to prison after a two-day good-behaviour pass has been recaptured in France.

Annamaria Cancellieri announced the news on Friday just hours after she had briefed parliament on the embarrassing escape of Bartolomeo Gagliano, who has a lengthy rap sheet and was serving a nine-year sentence for theft when he went missing earlier this week.

A justice ministry official said Gagliano was captured in Menton, France, just across the border from Italy on the Mediterranean coast.

He had been due back at Genoa's Marassi prison on December 17 after going to visit his elderly mother in nearby Savona.

Savona is about 125 kilometres from Menton along the coast.

At some point between Savona and Genoa, Gagliano allegedly carried out a carjacking and then drove off in the car, launching an international manhunt as questions swirled about how prison officials could have let out a serial killer with known psychiatric problems.

On Friday, Cancellieri disputed prison officials' claims that they didn't know of Gagliano's criminal or psychiatric background, saying they had his full record.

The record, which started in 1981, includes convictions for multiple homicides, kidnapping, sexual violence and other crimes that he served time for in psychiatric hospitals.

Marassi's prison director, Salvatore Mazzeo, has said that as far as the prison was concerned, Gagliano was merely a thief serving time for a 2006 robbery conviction and was due to be released in 2015.

Cancellieri noted prison records said he had been well-behaved and his recent psychiatric evaluations found him to be lucid, calm and collaborative.

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Homicide cops investigate Rosebud body

A WOMAN'S body has been discovered in a home on Victoria's Mornington Peninsula.

The body was found at a property on William Crescent, Rosebud West, about 1.30pm (AEDT) on Saturday.

Homicide Squad detectives were en route to the scene on Saturday evening and the circumstances surrounding the death were being investigated.

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Gay couples wed in Utah after ruling

A US judge has struck down Utah's same-sex marriage ban in a decision that marks a drastic shift towards gay marriage in a conservative state where the Mormon church has long been against it.

Friday's decision set off an immediate frenzy as the clerk in the state's most populous county began issuing marriage licences to dozens of gay couples while state officials took steps to appeal the ruling and halt the process.

Cheers erupted as the mayor of Salt Lake City led one of the state's first gay wedding ceremonies in an office building about three miles from the headquarters of the Mormon church.

Deputy Salt Lake County Clerk Dahnelle Burton-Lee said the district attorney authorised her office to begin issuing licences to same-sex couples but she couldn't immediately say how many had been issued.

Just hours earlier, US District Judge Robert Shelby issued a 53-page ruling saying the constitutional amendment Utah voters approved in 2004 violates gay and lesbian couples' rights to due process and equal protection under the 14th Amendment. Shelby said the state failed to show that allowing same-sex marriages would affect opposite-sex marriages in any way.

"In the absence of such evidence, the State's unsupported fears and speculations are insufficient to justify the State's refusal to dignify the family relationships of its gay and lesbian citizens," Shelby wrote.

The decision drew a swift and angry reaction from Utah leaders, including Republican Governor Gary Herbert.

"I am very disappointed an activist federal judge is attempting to override the will of the people of Utah. I am working with my legal counsel and the acting attorney general to determine the best course to defend traditional marriage within the borders of Utah," Herbert said.

Late on Friday, the state filed both a notice of appeal of the ruling and a request for an emergency stay that would stop marriage licences from being issued to same-sex couples. It's unknown when the judge will make a decision on whether to grant the stay.

If the ruling stands, Utah would become the 18th state to allow gay marriages, said Jon Davidson, director of Lambda Legal, which pursues litigation on LGBT issues nationwide. That's up from six before the US Supreme Court last year struck down part of the Defense of Marriage Act that defined marriage as between a man and a woman. The District of Columbia also allows same-sex marriage.

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Khodorkovsky starts life as a free man

Kremlin critic Mikhail Khodorkovsky has arrived in Germany after being freed from a Russian prison. Source: AAP

RUSSIA'S most famous prisoner, Kremlin critic and former oil tycoon Mikhail Khodorkovsky, has begun life as a free man in Germany after his surprise pardon by President Vladimir Putin.

After spending more than 10 years behind bars, Russia's former richest man was quietly escorted from his prison in northwestern Russia on Friday and boarded a plane to Berlin in an operation worked out behind the scenes with the German government.

The lightning speed of his release led some observers to suggest that Khodorkovsky might have flown into forced exile but Putin's spokesman dismissed such suggestions.

"He is free to return to Russia. Absolutely," Dmitry Peskov said on Saturday. He declined however to say whether any conditions were attached to his release or whether he would be free to participate in politics.

Putin had stunned Russia on Thursday by saying his fierce critic had asked for clemency on humanitarian grounds as his mother was ill.

"Guided by humanitarian principles," the Russian strongman signed a pardon decree on Friday.

In his first remarks since his release, Khodorkovsky said in a statement on Friday he did ask Putin for a pardon but his request did not amount to an admission of guilt and thanked Hans-Dietrich Genscher, Germany's foreign minister from 1974-1992, for helping negotiate his release.

"I am very much looking forward to the minute when I will be able to embrace my loved ones," the father of four said, without specifying his future plans.

Khodorkovsky's 79-year-old mother Marina, who has cancer, was expected to fly out to Berlin, where she had undergone treatment before, to see her son.

The Russian opposition magazine The New Times, for which Khodorkovsky wrote a column about his prison life, said the former tycoon called the editorial office to express gratitude for support.

"The most important today is Freedom, Freedom, Freedom," the magazine quoted him as saying.

"A lot lies ahead, the release of those hostages who still remained in prison, first and foremost Platon Lebedev," he said, referring to his jailed business partner.

Genscher said he was unaware if Khodorkovsky planned to remain in Germany: "I think that he wants to take a deep breath and wait to take his family in his arms tomorrow."

Interviewed on CNN television, Khodorkovsky's son Pavel, said he was in a state of "happy shock" following his father's release, adding that they had spoken on the phone.

"He's doing very well, sounds certainly very good and very happy."

Pavel said he "didn't think" his father would seek political asylum in Germany.

Khodorkovsky's release coincided with an amnesty for prisoners convicted of non-violent crimes that is expected to free the two jailed members of Pussy Riot band, Nadezhda Tolokonnikova and Maria Alyokhina, just as the Kremlin readies to host the Winter Olympics in February.

Thirty foreign and Russian Greenpeace activists including an Australian man, arrested on hooliganism charges after their protest against Arctic oil drilling, are also expected to escape prosecution.

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Vic cyclist dies after alleged hit-run

A CYCLIST has died after an alleged hit-and-run collision a kilometre from his Melbourne home.

Brighton East man Julian Paul, 53, was cycling home on November 26 when he was hit from behind by a car, leaving him with severe spine and brain injuries.

He died in The Alfred hospital on Wednesday night, police said on Friday.

A 31-year-old Moorabbin woman was charged a few days after the incident with failing to stop after an accident and failing to render assistance.

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Hockey calls for disaster inquiry

The federal coalition wants the Productivity Commission to investigate spending on disasters. Source: AAP

THE federal coalition wants the Productivity Commission to look at how much the nation spends on disasters and how to help communities recover in a sustainable way.

Treasurer Joe Hockey says most existing disaster funding models are weighted towards response and recovery, with a focus on immediate humanitarian and economic relief and restoration of infrastructure to its previous standard - instead of longer-term resilience.

He has asked the commission to examine the full scope of national expenditure on disasters and the effectiveness of current mitigation support arrangements, which help prevent similar events from affecting communities the same way in the future.

"Further, the commission will be asked the best ways to reduce the impact of natural disasters on communities and how they recover in a sustainable way," Mr Hockey said in a statement on Friday.

Opposition leader Bill Shorten said cutting support for bushfire victims is wrong.

"But that's exactly what the Abbott government has done in the Blue Mountains," he told AAP.

"My concern is this review will become another excuse for the government to make savage cuts."

The Insurance Council of Australia said it was a positive step towards improving community resilience and it looks forward to helping the inquiry.

"Though disaster response and recovery are an essential component of government relief efforts, the insurance industry believes mitigation infrastructure has long-term benefits for exposed communities and the taxpayer," the council said in a statement.

Deloitte Access Economics estimates the total economic cost of natural disasters in 2012 was more than $6 billion.

In the last five years, natural disasters around the country have claimed more than 200 lives and devastated hundreds of thousands of Australians.

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Flatback turtle trackers want Qld station

Researchers want a permanent station in Queensland to monitor populations of Flatback turtles. Source: AAP

FLATBACK turtle trackers want to set up Australia's first permanent research station to assess how they are affected by large coastal developments.

The pale olive green-grey turtles are one of only seven sea turtle species in the world, and only nest in northern Australia.

While they are listed as vulnerable in Queensland, Western Australia and nationally, there is not enough data for an international listing.

Environmental organisation Wild Mob and The Queensland Trust for Nature are three years into a study of populations off the Queensland coast.

The research will help determine if developments, such as a large-scale dredging project for the gas export industry at Curtis Island off Gladstone, is affecting turtle numbers.

The turtles that nest on Avoid Island, which sits offshore between Gladstone and Mackay, are considered a control population because the refuge is far enough away from port developments to the north and south not to be affected.

Researchers will then be able to compare the health of populations closer to major development sites, with what's happening on Avoid Island.

About 30 per cent of the flatback turtles that lay their eggs on Australia's east coast do so on Avoid Island, which was bought by the trust in 2006.

The trust hopes to start a university program on the island during nesting seasons and raise enough funds to establish a permanent research station.

At present, there are no dedicated research stations to provide ongoing studies into Australia's only endemic sea turtle.

World renowned turtle tracker Dr Nancy Fitzsimmons led a half a dozen volunteers monitoring the December nesting season on Avoid Island.

Like previous years, more than 70 turtles laid eggs and, by February, it is hoped up to 7000 turtles will hatch.

Dr Fitzsimmons says it's too early to tell if port developments are having an impact.

"If we don't do these sorts of studies, we have no idea what's happening with the population," Dr Fitzsimmons says.

"There's a lot of international interest in the flatback turtles in Australia, and people come to Australia specifically to see these turtles because they aren't found anywhere else."

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Australians to spend $3bn over weekend

Australians are expected to spend $3 billion on Christmas shopping this weekend. Source: AAP

AUSTRALIANS are expected to spend more than $3 billion across the country as they rush to get their last-minute Christmas gifts in.

The latest projections from the Australian National Retailers Association (ANRA), released on Friday, predict people will spend an average of around $130 each this weekend.

In good news for retailers, almost 90 per cent of the $3 billion expected to be spent over the weekend will be dropped at bricks and mortar stores.

Just over $300 million is predicted to be spent online.

The big spend is a 5.4 per cent increase from the same time last year, ANRA CEO Margy Osmond said.

People in NSW, Victoria and Queensland will be responsible for 75 per cent of the spending surge, with those in the ACT, Northern Territory and Tasmania seemingly having had their Christmas shopping wrapped up.

"Santa's retail helpers will be working around the clock this weekend in an effort to ensure all the Santa lists around the country are filled," Ms Osmond said.

Australians will be taking advantage of extended trading hours to finish off their shopping, she said.

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Sea ice trip reopens Mawson's Huts route

TWO Australian explorers have made it over dangerous sea ice to Mawson's Huts in Antarctica, which have been inaccessible for several years.

Conservator Ian Godfrey and heritage carpenter Jon Tucker navigated 70km of sea ice on an amphibious vehicle to reach the huts.

Their visit was part of a privately funded expedition of nearly 30 scientists and others to commemorate the centenary of Douglas Mawson's exploration of the Cape Denison area.

The Mawson's Huts Foundation says this is the first time it has attempted such an ambitious and potentially hazardous crossing of the ice.

It was a joint operation between the foundation and the Australian Antarctic Division.

The huts on Cape Denison have been inaccessible for many years because an iceberg about the size of the ACT blocked the entrance to the bay.

Dr Godfrey said the trip across the sea ice was the journey of a lifetime.

"Mawson's Huts seem to be in good condition but we may only have a day here so we're doing all the essentials such as changing data loggers and assessing the condition of the building structure," he said.

He was hopeful the success of this mission meant the Mawson's Huts Foundation could resume annual visits.

Expedition manager Rob Easther said several of the scientists had planned to also make the full journey to the huts to conduct many of the experiments carried out there by Mawson's 1911-14 Australasian Antarctic expedition.

However, weather conditions mean it's likely the modern expedition team will have to leave the area sooner than hoped.

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Boy critical after 'horror' Sydney crash

A young boy is in a critical condition after a crash involving a cement truck in Sydney's southwest. Source: AAP

A SIX-YEAR-OLD boy is in a critical condition after being thrown from a van in a "horror crash" involving a cement truck in Sydney's southwest.

Police said the Toyota Tarago was stopped in a breakdown lane on the Hume Highway just before noon (AEDT) on Thursday when the cement truck crashed into its rear.

The boy, who was sitting in a rear booster seat, was thrown some 10 metres from the van by the force of the crash and suffered head, chest and pelvic injuries and leg fractures, CareFlight said.

The green van was left a mangled and crushed wreck.

Describing it as a horror crash, CareFlight said one of its trauma doctors performed emergency roadside surgery on the boy.

The six-year-old was then placed in an induced coma before being flown by helicopter to Westmead Children's Hospital in a critical condition.

His 13-year-old sister, who was sitting in the front passenger seat of the van, sustained minor injuries including cuts and abrasions and was also taken to Westmead.

Their mother, standing outside the van at the time of the crash, suffered suspected pelvic injuries and was taken to Westmead Hospital for treatment, police said.

The driver of the cement truck and his passenger were trapped in their vehicle before being freed by emergency services and taken to hospital.

The truck driver, believed to be in his 30s, is undergoing mandatory blood and urine tests.

Southbound lanes of the motorway have been re-opened.

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Korean man's body believed to be in grave

Police will dig up a shallow grave in Brisbane as they search for a missing South Korean man. Source: AAP

MIN Tae Kim went to exchange his hard-earned Australian savings for South Korean money for his return home but he may never get there.

Police have found a shallow grave on a vacant property in southwest Brisbane they believe could contain the 28-year-old South Korean man's body.

Detective Inspector Kemp says two men and a woman are being held over his disappearance.

Blood was found around the grave site, in Algester, and forensics officers are preparing to exhume the contents.

They hope to know by Friday if it is Mr Kim's remains.

"We're not sure what is in that grave at this time," Det Insp Kemp told reporters.

"It could be a dog, we do have fears that is human though and it could be the missing person."

Det Insp Kemp said Mr Kim had been working hard at a local abattoir to build up his savings before his planned return to South Korea next month.

But he needed to change $15,000 cash into South Korean won and put an ad on the Gumtree website to get a cheaper exchange rate.

Mr Kim left his Cannon Hill share house with his cash to do a deal with an unknown person about 2pm Monday.

It was the last time he was seen alive.

"We feel that he may have met with foul play, we don't know," Det Insp Kemp said.

Mr Kim's disappearance comes after 22-year-old South Korean woman Eunji Ban was allegedly bashed to death while walking to work in Brisbane's CBD last month.

The Council of International Students Australia president Thomson Ch'ng said the incidents would rock people's confidence in Brisbane being a safe place to study.

"Two incidents within three weeks is not good for Brisbane and Australia," he told AAP.

"The fact is, international students are important bridges between Australia and the international community and whatever happens here (in Australia), the world is watching."

Det Insp Kemp said it would be a very unfortunate if Mr Kim became the second South Korean murdered in Brisbane in less than a month.

"If it is and if he has been brutally murdered, it's a shocking thing for us and a concern for us, most certainly," he said.

Police expect to find out the results of forensic testing on the gravesite on Friday.

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US 'regrets' Indian diplomat's treatment

THE US has voiced regret to India over the treatment of a diplomat whose account of being stripped and cavity-searched triggered outrage as the prosecutor in charge of the case defended the arrest.

With New Delhi vowing to "restore the dignity" of diplomat Devyani Khobragade, Indian media reported that the 39-year-old was being moved from her post as deputy consul general in New York to the UN mission in a bid to thwart her prosecution.

In a strongly worded statement, Manhattan US Attorney Preet Bharara said the diplomat had "clearly tried to evade US law designed to protect from exploitation the domestic employees of diplomats and consular officers".

Khobragade is free on bail after her December 12 arrest in New York for allegedly paying a domestic worker a fraction of the minimum wage and for lying about the employee's salary in a visa application.

Bharara, who was born in India, stressed that the employee allegedly worked "far more" than the 40 hours a week in her contract and visa application.

The worker is said to have been paid just $US3.31 an hour - well below New York's required $US7.25 - despite signing a contract to pay her three times that amount for childcare and other services.

"Is it for US prosecutors to look the other way, ignore the law and the civil rights of victims (again, here an Indian national), or is it the responsibility of the diplomats and consular officers and their government to make sure the law is observed?" Bharara asked.

While India retaliated against American diplomats in the usually US-friendly country, Secretary of State John Kerry tried to end the row in a telephone call to India's national security adviser, Shivshankar Menon.

Kerry "expressed his regret, as well as his concern that we not allow this unfortunate public issue to hurt our close and vital relationship with India", in a call to Menon, the State Department said.

State Department deputy spokeswoman Marie Harf said it was "particularly important to Secretary Kerry that foreign diplomats serving in the United States are accorded respect and dignity just as we expect our own diplomats should receive overseas".

The fury in India grew after an email from Khobragade in which the diplomat said she had been repeatedly stripped and cavity-searched by the US authorities after her detention.

"I must admit that I broke down many times as the indignities of repeated handcuffing, stripping and cavity searches, swabbing, in a hold-up with common criminals and drug addicts were all being imposed upon me despite my incessant assertions of immunity," she said in the email.

But Bharara, the US attorney, insisted that Khobragade was arrested in the "most discreet" way possible, was never handcuffed or restrained and was searched by a female deputy marshal in a "private setting".

"One wonders why there is so much outrage about the alleged treatment of the Indian national accused of perpetrating these acts, but precious little outrage about the alleged treatment of the Indian victim and her spouse?" he asked.

But the diplomat's allegations of harsh treatment at the hands of the US has caused huge offence in a country that sees itself as an emerging world power.

In an address to parliament, Foreign Minister Salman Khurshid said it was his "duty to bring the lady back.

"We have to restore her dignity and I will do it at any cost," he said. Prime Minister Manmohan Singh termed the diplomat's arrest "deplorable".

Bulldozers dragged away concrete barricades that had been set up outside the US Embassy.

And US consular officials have been told to return identity cards that speed up travel into and through India, with their import clearances for duty free alcohol and other goods suspended.

State Department No.3 Wendy Sherman spoke to Foreign Secretary Sujatha Singh and voiced hope that Indian authorities "will continue to fulfil their host government obligations regarding the safety and security of our personnel and mission premises", Harf said.

Harf said the State Department had not received any notice that India wanted to change Khobragade's credentials to the UN mission.

Such a move "would have to be approved by all appropriate authorities" at the UN and State Department, she said.

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No mechanical issues in Walker crash

INVESTIGATORS have found no evidence that the Porsche carrying Fast & Furious actor Paul Walker had mechanical problems before it crashed.

A US law enforcement official with knowledge of the investigation tells The Associated Press the car lost control due to "speed, and speed alone."

The official requested anonymity because the official was not authorised to speak publicly.

The investigation also ruled out debris in the roadway as causing the car in which Walker was a passenger to smash into a light pole and tree.

The November 30 crash killed Walker and the driver, his friend and financial adviser Roger Rodas.

Investigators won't set a firm speed at which they think the car was travelling until Porsche engineers come to California next month to extract information from on-board data collectors.

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US 'regrets' Indian diplomat treatment

THE United States has voiced regret to India over the treatment of a diplomat whose account of being stripped and cavity-searched triggered outrage.

With New Delhi vowing to "restore the dignity" of diplomat Devyani Khobragade, Indian media reported that the 39-year-old was being moved from her post as deputy consul general in New York to the UN mission in a bid to thwart her prosecution.

As India retaliated against American diplomats in the usually US-friendly country, Secretary of State John Kerry tried to end the row in a telephone call to India's national security adviser Shivshankar Menon.

"As a father of two daughters about the same age as Devyani Khobragade, the secretary empathises with the sensitivities we are hearing from India about the events that unfolded after Ms Khobragade's arrest," a State Department statement said.

Speaking to Menon, Kerry "expressed his regret, as well as his concern that we not allow this unfortunate public issue to hurt our close and vital relationship with India," it said.

State Department spokeswoman Marie Harf said it was "particularly important to Secretary Kerry that foreign diplomats serving in the United States are accorded respect and dignity just as we expect our own diplomats should receive overseas."

The White House also tried to quell the rift, with spokesman Jay Carney saying that "this isolated episode is not indicative of the close and mutually respectful ties that we share."

Khobragade was arrested on December 12 in New York for allegedly paying a domestic worker a fraction of the minimum wage and for lying about the employee's salary in a visa application.

She is free on bail.

The fury in India grew on Wednesday after an email from Khobragade in which the diplomat said she had been repeatedly stripped and cavity-searched by the US authorities after her detention.

"I must admit that I broke down many times as the indignities of repeated handcuffing, stripping and cavity searches, swabbing, in a hold-up with common criminals and drug addicts were all being imposed upon me despite my incessant assertions of immunity," she said in the email.

"I got the strength to regain composure and remain dignified, thinking that I must represent all of my colleagues and my country with confidence and pride."

The revelation that a diplomat could be subjected to such treatment at the hands of the United States has caused huge offence in a country that sees itself as an emerging world power.

In an address to parliament, Foreign Minister Salman Khurshid said it was his "duty to bring the lady back."

"We have to restore her dignity and I will do it at any cost," he added.

Prime Minister Manmohan Singh termed the diplomat's arrest "deplorable" as newspapers hailed his government for a series of reprisal measures.

"India takes on Uncle Sam," read the front-page headline of The Hindustan Times, while the Mail Today splashed with "Bulldozer Diplomacy" on top of a picture of a digger dragging away concrete barricades outside the US embassy on Tuesday.

US consular officials have also been told to return identity cards that speed up travel into and through India. Import clearances for duty free alcohol and other goods have been suspended.

Khobragade is alleged to have paid her worker just $US3.31 ($A3.75) an hour - well below New York's required $US7.25 - despite signing a contract to pay her three times that amount.

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LNP pins hopes on nurse to keep Qld seat

THE Liberal National Party (LNP) in Queensland is pinning its hopes on a former Family First candidate to retain the seat vacated by disgraced state MP Scott Driscoll.

Kerri-Anne Dooley has been pre-selected by the LNP to run in next year's Redcliffe by-election.

The nurse educator ran against Mr Driscoll at the last Queensland election as a candidate for the Family First party.

An LNP spokesman said the lifelong Redcliffe resident would be a great advocate for the electorate that had been let down by Mr Driscoll.

"Like everyone in Redcliffe, Kerri-Anne Dooley feels let down and disappointed by the events of the past year by the previous member," he said.

"The LNP believes Kerri-Ann provides the best chance for a fresh start for Redcliffe.

"She's lived her whole life there, raised her family there and is passionate about the local community."

Ms Dooley will be up against former federal MP Yvette D'Ath, who is Labor's candidate.

Ms D'Ath lost the federal seat of Petrie, which takes in parts of Redcliffe, to the Liberal National Party's Luke Howarth in a tight contest at the September election.

A date is yet to be set for the by-election to replace Mr Driscoll, who resigned from state parliament last month before he could be expelled.

The former LNP member turned independent was subsequently fined $90,000 for contempt of parliament for being dishonest about his business dealings and income.

His wife Emma Driscoll is facing 10 counts of fraud.

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Victorian Labor reshuffles front bench

THE Victorian opposition has reshuffled its front bench ahead of the 2014 state election.

Labor leader Daniel Andrews announced the new line-up on Thursday, saying it was strong and balanced with a good mix of people.

"We're going to continue to scrutinise the government and provide a strong offering so that when Victorians vote in November they will have a real choice," Mr Andrew told reporters.

Labor has created the new ambulance and family violence portfolios.

The family violence portfolio will be the responsibility of Danielle Green, who is the party's spokeswoman on health promotion and women.

"Family violence is a crime, it's a scourge. It's something we need to do much more about," Mr Andrews said.

If elected, he would put family violence portfolio in the department of premier and cabinet so it had a government focus.

Gavin Jennings will add the ambulance portfolio to his health and mental health portfolios.

Albert Park MP Martin Foley has been promoted to spokesman for water, arts and youth affairs and Williamstown's Wade Noonan will take up the police portfolio.

Altona MP Jill Hennessy will take over the public transport portfolio from Fiona Richardson, who will be responsible for innovation and small business when she returns in 2014 after treatment for cancer.

Martin Pakula will take over the corrections portfolio from Jill Hennessy to better link corrections in prison beds to sentencing laws, Mr Andrews said.

Several Labor MPs have announced they won't contest the election.

These include high-profile former government ministers Justin Madden and John Lenders, who will remain as the opposition's leader in the Legislative Council until the poll.

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Group of friends claim $70m lottery ticket

THE hunt for Australia's biggest single lottery winner is over after a group of female friends produced the winning ticket purchased on the Gold Coast.

The women won $70 million in Tuesday's Oz Lotto draw and have vowed to split it equally.

The syndicate leader said she checked the unregistered ticket on Wednesday morning and was shocked to discover that they had won.

"When I realised we'd won, I just sat there shaking like a leaf," she said.

The women regularly meet up for lunch and decided to use their loose change to buy a ticket.

"I told everyone on the last occasion to throw in some loose change and I'll buy a lotto ticket in a big draw before Christmas," she said.

"I saw Oz Lotto had jackpotted to $70 million so purchased a QuickPick entry."

She's not sure what she'll do with her share.

"My husband told me he wanted to buy a racehorse but I said 'It's not your prize'," she laughed.

The winning 12-game ticket was bought from a Runaway Bay news agency.

Lotto players still have an opportunity to win big this week with a $40 million Powerball jackpot on Thursday.

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Unions still in the dark over Qantas cuts

UNIONS say they are still in the dark as to where the latest rounds of Qantas job cuts will come from.

Qantas boss Alan Joyce and other senior executives met with several unions at is Sydney headquarters on Wednesday.

Following the talks, the Australian Council of Trade Unions (ACTU) Secretary Dave Oliver said he couldn't get any clarification as to who would be affected by the airline's plan to axe at least 1000 jobs.

But he said the ACTU was pleased Qantas had given a commitment to consult on the cuts.

"We'll be holding Qantas to that commitment and ensuring that every reasonable option is explored to reduce any job losses across the whole Qantas group," he said in a statement after the meet.

Transport Workers Union National Secretary Tony Sheldon said the lack of information as to where the cuts would come from would hurt employees over the holiday break.

"Without information on the cuts, all 30,000 Qantas Group staff would spend Christmas in fear that their jobs might be the ones to go," Mr Sheldon said in a statement.

"That's not the way to treat any workforce, particularly as they and their families enter the Christmas period."

But Mr Joyce said while it was "understandable" unions sought commitments on jobs, the business was looking at all options.

"With an all-options structural review of the business underway, it would be disingenuous for us to rule anything in or out," he said in a statement.

"We can say that that Qantas will always have the bulk of its operations here in Australia, and that any actions we take are ultimately about protecting as many Australian jobs as we can by making Qantas stronger."

The airline used the meet to highlight the "extreme challenges" it faces, Mr Joyce said.

It comes after Qantas announced earlier this month that it would be undergoing a three-year $2 billion cost reduction program including a reduction of at least 1000 jobs and a company-wide structural review.

Mr Joyce said he made it clear in the meet that the changes as a result of the cost reduction program were "non-negotiables".

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Perth hospital refurbishments on ice

THE much-needed refurbishment of Royal Perth Hospital and redevelopment of Graylands Hospital have been put on hold as the West Australian government pours cash into two major new medical facilities.

Treasurer Troy Buswell revealed in the state's mid-year economic and fiscal outlook on Wednesday that the projects had been "reprioritised" to free up $238.2 million for a computing system at the Fiona Stanley Hospital and "transitioning activities" for the Perth Children's Hospital.

Cuts to the annual medical equipment replacement program were also announced.

Mr Buswell also revealed a six-month delay in commissioning the Fiona Stanley Hospital - attributed to the complexity of the computing system, with a "paperless" facility planned - would cost $52.7 million in facilities management fees to Serco.

He said that security and maintenance, including gardening, simply had to be done.

Mr Buswell took a swipe at the Health Department, which needed an additional $98 million after it failed to meet "one cent" of its leave liability target.

And a further $124 million has been budgeted for commissioning and service transition costs for the Fiona Stanley hospital, which was previously to be paid by the Health Department from existing cashflow.

"It's now apparent that that's not the case," Mr Buswell said.

"A lot of those costs are to do with labour, because you're effectively having to start up a second hospital while continuing to provide services around the health system."

The Health Services Union is concerned the focus on Fiona Stanley Hospital - set to be the state's top medical facility - will mean the ageing Royal Perth Hospital will be ignored, or jobs and beds slashed.

And there's not enough capacity at Graylands psychiatric hospital, meaning some mental health patients are sent to mainstream hospitals and kept under guard.

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Synthetic drug use down among teens: US

FEWER teens are trying fake marijuana according to the US government's annual survey on drug use.

Synthetic marijuana, known by such names as K2 and Spice, is thought to have appeared in the US in 2009. Soon after came a spike in emergency room visits, even deaths, as the drug caught on among young people.

About 8 per cent of high school seniors said they've used synthetic marijuana this year, according to the report released Wednesday by the National Institutes of Health. That's a sharp drop from the 11 per cent of seniors who'd experimented with fake pot in 2012.

Use of synthetic drugs among younger teens dropped as well, said University of Michigan's Professor Lloyd Johnston, who heads the annual Monitoring the Future survey of more than 40,000 students in years 8, 10 and 12.

"The message has gotten out that these are dangerous drugs," Prof Johnston said. "Their ever-changing ingredients can be unusually powerful. Users really don't know what they are getting."

Synthetic marijuana is made of dried plant material sprayed with various chemicals and packaged to look like pot. The Drug Enforcement Administration banned a number of chemicals used to make synthetic marijuana in 2011, but new chemical varieties continue to appear.

The survey results were being released just weeks before recreational marijuana sales become legal in Colorado and Washington state for people over 21. Opponents of legalised marijuana long have said they worried about its impact on children.

The annual survey also found that teenage perceptions of the dangers of marijuana use continued to decline. In 1993, more than 60 per cent of high school seniors considered marijuana dangerous, while this year less than 40 per cent thought that.

Dr Nora Volkow, director of the National Institute on Drug Abuse, said researchers worry that as perceptions of marijuana as a dangerous drug continue to decline, use will keep increasing among teenagers.

Mason Tvert, communications director for the Marijuana Policy Project which advocates for regulating marijuana, said steady rates of marijuana use among teenagers "underscores the benefits of regulation versus prohibition"

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Girls dominate top HSC marks in NSW

GIRLS have again dominated the top spots in HSC subjects across NSW.

As thousands of students prepare to get their HSC results on Wednesday, more than 100 NSW high achievers celebrated taking out first place in their subjects at a ceremony at the Australian Technology Park at Eveleigh in Sydney on Tuesday.

Again, girls dominated the top spots with 83 of the 121 recipients young women.

"To claim the first-in-course spot is a great honour for these students, and they, their teachers and their families should be very proud," Education Minister Adrian Piccoli said in a statement.

Of the students claiming the top posts, three received a first-in-course award for more than one course, while there was equal first place in nine courses.

Twelve of the 121 recipients lived in towns and cities in regional NSW, including Inverell, Grafton, Hermidale, Coonamble, Griffith, Wagga Wagga, and two students were from Cooma.

Last year young women also dominated the results, making up two-thirds of the award recipients.

Association of Independent Schools of NSW's executive director, Dr Geoff Newcombe said his sector had also performed well with 35 per cent of recipients coming from independent schools.

Pupils from Sydney Grammar School took out six First in Course awards while students from Pymble Ladies College achieved three awards, he said.

A further six independent schools had two First in Course recipients while 22 other independent schools each had one student who topped the state in a subject.

It comes as more than 70,000 students will have access to their HSC results from 6am on Wednesday.

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Hockey paints bleak budget picture

Treasurer Joe Hockey will blame Labor over the expected dismal mid-year economic outlook. Source: AAP

THE federal budget could remain in deficit for the next decade and drive national debt to two-thirds of a trillion dollars, the government warns.

Treasurer Joe Hockey painted a bleak picture when he handed down the mid-year budget review on Tuesday, telling Australians they would need to adjust their expectations.

Mr Hockey was making the case for broad-based savings, which will come in next year's budget, against a backdrop of weaker economic growth and higher unemployment for a number of years.

"Returning the budget to sustainable surpluses will not be achieved by piecemeal savings here and there," Mr Hockey told the National Press Club in Canberra.

"All options are on the table."

The 2013/14 federal budget has blown out by $17 billion since before the election and is forecast to be the third largest deficit on record at $47 billion.

There is no immediate sign the budget will return to surplus, after the previous forecast for a $4.2 billion surplus in 2016/17 was wiped out.

Instead, there will be a $17.7 billion deficit in that financial year.

Budget deficits are also projected for every year to 2023/24 unless action is taken, the government said.

The last surplus, of $19.7 billion, was in 2007/08.

If the government's forecasts stand, by 2023/24 the federal budget will have been in deficit for 16 years.

"Australians will now have to adjust their expectations of what government can sustainably provide, otherwise our nation's prosperity and our people's quality of life will be at risk," Mr Hockey said.

Shadow treasurer Chris Bowen said Mr Hockey should have outlined a path back to surplus.

"Joe Hockey is softening up the Australian people," Mr Bowen said.

"He is preparing the ground for deep and brutal cuts come budget time."

The budget deterioration reflects two key factors: a softer economic outlook and steps taken by the coalition to address unresolved issues inherited from the former Labor government, such as the $8.8 billion recapitalisation of the Reserve Bank of Australia.

Slower growth has resulted in a $37 billion reduction in tax receipts over the forward estimates and the economy remains in transition from a mining investment boom to broader sources of growth.

The economy is likely to expand by a sub-trend 2.5 per cent in 2013/14 and into 2014/15. Trend growth is usually about 3.25 per cent.

Unemployment is forecast to be six per cent by mid-2014, but rising to 6.25 per cent in 2016/17. The jobless rate is now 5.8 per cent.

Government debt is also expected to rise, from $320 billion this year to $460 billion by 2016/17, and a staggering $667 billion by 2023/24.

Australian Chamber of Commerce and Industry chief executive Peter Anderson said the figures were alarming.

"The only true solution to this alarming cycle of debt and deficit is for the government to provide the private sector with more economic freedom and a fairer deal to create the wealth required to get us out of this budget hole," he said.

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Qld pilot died doing what he loved: wife

Authorities are searching for a newly-wed couple after their plane crashed off Queensland's coast. Source: AAP

PILOT Alexander Rae died doing what he loved, his wife says.

Jimmy, as he was known, was flying a 21-year-old French woman on a scenic joy ride in a Tiger Moth when the biplane crashed into the water off South Stradbroke Island, killing them both

Campers and resort guests saw the red and white plane spear into the water in an almost vertical position about 400 metres off the island, near the Gold Coast, on Monday afternoon.

In his last radio communication, Jimmy said: "Conducting aerobatics over 3500 feet", The Courier-Mail reported.

Debris from the crash began to wash up on the beach as a frantic search for survivors in choppy waters wore on into the evening until it was suspended in the darkness.

At dawn on Tuesday underwater visibility had improved and a few hours later police divers using sonar found the plane's fuselage lying on the seabed.

The pilot and his passenger's bodies were inside.

Jimmy's wife Alice thanked search crews and well wishers.

"On behalf of all of Jimmy's family and friends, we would like thank everyone for their support and well wishes," she said in a statement.

"We all know Jimmy died doing what he loved."

The family of the French tourist is yet to make a statement.

The Australian Transport Safety Bureau is investigating the crash and has appealed to anyone who saw it, or picked up debris that washed ashore, to come forward.

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SAS 'not involved' In Diana's death

THERE is "no credible evidence" of any SAS involvement in the deaths of Diana, Princess of Wales, and Dodi Fayed, British police say.

In August, Scotland Yard began looking at claims that the couple were murdered by a member of British special forces, but on Tuesday it ruled out opening a criminal investigation.

The allegation is thought to have been made by the former parents-in-law of an ex-soldier, based on information that he talked about in the past. That information was then was passed to the Metropolitan Police via the Royal Military Police.

Mohamed al Fayed, Dodi's father, was "disappointed" by the outcome and will continue his fight "to establish the truth that they were murdered", his solicitor, Simon McKay, said.

He said: "Mr al Fayed will continue his struggle to reveal the truth about the tragedy in Paris which claimed the lives of his eldest son and Princess Diana."

The Met said officers had conducted a "scoping exercise" to assess the "relevance and credibility" of the information provided, and to decide whether it was sufficient to warrant a reopening of the criminal investigation.

In a statement, it said: "This assessment included taking statements from a number of individuals and reviewing records. As part of the scoping officers were given unprecedented access to Special Forces Directorate records.

"Every reasonable line of inquiry was objectively pursued in order to fully evaluate any potential evidence.

"The final conclusion is that, whilst there is a possibility the alleged comments in relation to the SAS's involvement in the deaths may have been made, there is no credible evidence to support a theory that such claims had any basis in fact.

"Therefore the MPS are satisfied there is no evidential basis upon which to open any criminal investigation or to refer the matter back to HM Coroner."

But McKay branded the "so-called scoping exercise" "the latest whitewash in a 16-year cover-up".

He added: "The Met should never have been given charge of the case as they had every incentive to return the result we now see. To have done anything else would have called into serious question their own Paget Report of 2007.

"The case of Soldier N should have been rigorously investigated by the Royal Military Police.

"It was wrong to put in charge of the scoping exercise an officer, Philip Easton, who had been an important figure in the Paget investigation, which said the deaths were accidental, a judgment overruled by the jury at the inquests that said that Dodi and Diana had been unlawfully killed."

Diana, Dodi and chauffeur Henri Paul died after their Mercedes crashed in a Paris tunnel after leaving the Ritz Hotel on the morning of August 31, 1997.

The hearing into the deaths of Diana and Dodi lasted more than 90 days, with evidence from around 250 witnesses.

The inquests concluded on April 7, 2008, with a jury returning a verdict that the "People's Princess" and her boyfriend were unlawfully killed.

Former Met Police commissioner Lord Stevens's Paget investigation was launched in 2004 at the request of Michael Burgess, the Royal Coroner, who was then overseeing the future Diana inquest.

The former top policeman published his report in December 2006, rejecting the murder claims voiced by some, including Mohamed al Fayed.

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Pressure grows for NSW pub lockouts

EMERGENCY service workers and doctors are demanding NSW government action to stop the carnage caused by alcohol-fuelled violence.

NSW confirmed it was the capital of drunken violence at the weekend, with 540 arrests during a trans-Tasman operation meant to curb the problem.

The NSW opposition is renewing its calls for a trial of reduced trading hours and lockouts in the state's licensed venues after the success of those measures in Newcastle.

The Last Drinks coalition, a group representing concerned emergency department staff, police and paramedics, has joined the chorus.

Its spokesperson, Australian Salaried Medical Officers' Federation president Dr Tony Sara, says the pressure is firmly on the government.

Dr Sara says a trial in select trouble spots would show positive results in a short time.

He said measures in Newcastle cut alcohol violence by 37 per cent and emergency department admissions by 26 per cent, so were worth a try in Sydney.

He challenged NSW Premier Barry O'Farrell to explain what harm a trial could do, believing the government was under the thumb of the powerful liquor lobby.

"How could it hurt?" Dr Sara told AAP.

"It might reduce profits a bit, but either they lose some money or we continue to have people hurt and maimed.

"I think the community comes before profits."

But Mr O'Farrell rejected calls for tougher laws, arguing authorities had done their part.

"Police and government agencies are doing their bit and the hotel industry, by and large, is responsibly getting on with their task," he told reporters on Monday.

"What we now need is for the community to come to the party."

NSW Opposition Leader John Robertson says police tell him privately they support tougher measures such as pub lockouts.

Police Commissioner Andrew Scipione agreed that cultural shift was crucial.

"Police will never arrest our way out of this problem," he said.

"If we don't start today we will lose a generation of young people to this love affair with alcohol."

Mr Scipione said a 23-year-old man who was punched and stomped on in front of dozens of revellers at Bondi Beach at the weekend was no longer in a critical condition.

The Australian Hotels Association NSW would not comment.

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Aurizon to cut rail fleet, cancel project

FREIGHT and coal haulage operator Aurizon will take a hit of almost $200 million as it cuts the size of its rail fleet and cancels a major Queensland project.

The company, previously known as QR National, is reducing its locomotive fleet by 28 per cent and cutting the number of wagons by 12 per cent in a bid to bring down fuel and maintenance costs.

Aurizon's downsizing will appear as an asset impairment expense of $130 million to $150 million in its accounts for the first half of the 2013/14 financial year.

The company will also incur a $47 million impairment on recent changes to several projects, including Glencore Xstrata's decision to stop the Wandoan project because of weakening thermal coal prices.

Aurizon had proposed a 210 kilometre Surat Basin rail corridor from the Wandoan mine in a joint venture with the Swiss multinational.

"There's not any job losses that are related to that," chief executive Lance Hockridge told reporters on Monday.

In July, Aurizon launched a second voluntary redundancy program in a bid to save $230 million by 2015.

Some 248 voluntary redundancies have since been accepted.

"I think the bulk of it is done," Mr Hockridge said.

More than 2,000 employees have left the company since it was privatised by the former Queensland Labor government in 2010.

Mr Hockridge said he was "cautious but confident" about the thermal coal sector, as well as the future of projects in Queensland's Galilee Basin, where Aurizon has agreed to develop a rail project for the GVK-Hancock joint venture involving billionaire Gina Rinehart.

Aurizon shares dropped two cents to $4.68.

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Kiwi extends gains over Aussie dollar

THE New Zealand dollar has extended its rally against its trans-Tasman counterpart as the divergence between the neighbouring economies makes New Zealand interest rates more attractive.

The kiwi rose as high as 92.49 Australian cents on Monday, the highest since October 2008, trading at 92.40 cents at 5pm in Wellington from 92.26 cents on Friday in New York.

The NZ dollar traded at 82.78 cents from 82.56 cents at 8am and 82.63 cents on Friday in New York.

The kiwi has been making fresh five-year highs against its Australian counterpart as the slowing economy in Australia and burgeoning local recovery underline the different stages of the interest rate cycle each nation's central bank is in.

New Zealand's Reserve Bank is keen on hiking rates next year, while Australia's is sitting on record-low rates to keep the stimulus coming.

Investors will be looking to see any hint of an easing bias when the minutes to this month's Reserve Bank of Australia policy meeting are released on Tuesday.

"Their central bank is quite determined to get the Aussie dollar lower to get a more sustainable mix in their economy," said Dan Bell, head of corporate sales at HiFX in Auckland.

"It looks like the kiwi/Aussie could get up to the 95 cent level" over the next month before it "runs out of puff," he said.

The kiwi fell to 85.04 yen at 5pm in Wellington from 85.31 yen on Friday in New York, and was little changed at 60.16 euro cents from 60.19 cents.

The trade-weighted index was steady at 77.92 from 77.90.

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Wesfarmers sells underwriting operations

DIVERSIFIED conglomerate Wesfarmers is selling its Australasian insurance underwriting operations to Insurance Australia Group (IAG) for about $1.85 billion - its biggest ever divestment.

Wesfarmers managing director Richard Goyder said the sale followed approaches by a number of parties that were interested in the underwriting business.

Wesfarmers had spent a lot of money in recent years getting the Australian and New Zealand insurance underwriting business into much better shape.

"But it hasn't delivered satisfactory returns on average over the last five years to Wesfarmers," Mr Goyder told reporters.

"And over a period of time, if any of our businesses don't generate satisfactory returns, we'll look and see what we do with it."

Mr Goyder said the sale of the insurance underwriting business also reduced some of the risk in Wesfarmers' portfolio of industrial, mining, retail and financial businesses.

There was inherent volatility in the insurance business because of catastrophic events like earthquakes in New Zealand, and Cyclone Yasi.

The sale does not include the insurance division's broking operations in Australia, New Zealand and the UK, and its Australian and New Zealand premium funding businesses which will remain part of Wesfarmers.

Wesfarmers expects a pre-tax profit of about $700 million to $750 million from the transaction, which will be included in the financial results for the second half of the 2014 financial year.

Mr Goyder said Wesfarmers had not yet decided what to do with the proceeds from the sale.

The sale is subject to regulatory approval, which is expected to take several months.

The acquisition comprises Wesfarmers' underwriting companies trading under the WFI and Lumley Insurance brands, and a 10-year distribution agreement with Coles.

IAG chief executive Mike Wilkins said the acquisition was a compelling strategic fit for IAG.

"Acquiring these businesses supports the group's strategic priorities of accelerating profitable growth in Australia and sustaining our market-leading position in New Zealand, and we expect attractive EPS (earnings per share) accretion," Mr Wilkins said.

IAG expects the acquisition will lift earnings per share by a modest amount in the first full year of ownership and by at least five per cent in the second year.

The acquisition will be partly funded from a $1.2 billion placement of shares to institutional investors, at $5.47 per share.

The integration of Wesfarmers' underwriting businesses is expected to generate pre-tax net benefits of about $140 million a year, with a significant proportion derived from reinsurance.

The integration process is expected to be substantially complete within two years, with pre-tax integration costs of $120 million.

Shares in Wesfarmers were 20.5 cents higher at $41.51 at 1515 AEDT. IAG shares are in a trading halt until the start of trading on Wednesday, December 18. They last traded at $5.70.

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Wind fears for WA bushfire near homes

High temperatures in Western Australia have prompted bushfire warnings for much of the state. Source: AAP

FIREFIGHTERS fear a wind change could cause a controlled bushfire to flare up again and threaten homes northeast of Perth.

An emergency warning has been downgraded to a watch-and-act alert for people four kilometres east of Toodyay.

The Department of Fire and Emergency Services (DFES) says the blaze is under control but not contained.

It is now burning in paddocks on the northern side of Goomalling-Toodyay Road, near the Wicklow and Dumbarton Estates.

"There is a possible threat to lives and homes as conditions are changing," the DFES said.

"You need to leave or get ready to actively defend."

About 130 volunteer Fire and Rescue Service and Bush Fire Service firefighters are fighting the fire, which was reported at 9.18am (WST) on Sunday and has burned about 230 hectares.

Two helicopters and two fixed-wing water bombers are assisting ground crews.

The DFES says it is expecting the wind to change from north-northwest to west-southwest at about 4pm (WST).

"This means that homes in the Wicklow and Dumbarton Estates may be threatened by fire and you need to keep up to date," DFES said.

Residents in Toodyay, about 86 kilometres northeast of Perth, told AAP there was smoke in the township but they were pleased with the quick response from firefighters.

Shire president David Dow said the blaze was burning in a semi-rural and rural area in which hundreds of people lived.

"The fire is obviously very serious," he told AAP.

"Everyone is just getting out at the moment."

People wanting to leave have been told to travel in a western direction towards the Toodyay township.

The Department for Child Protection has set up a temporary evacuation centre at the Toodyay Community Hall.

Goomalling-Toodyay Road has been closed and motorists have been warned to avoid the area.

The cause of the fire is unknown.

In December 2009, a bushfire destroyed 38 homes and damaged about 137 properties in Toodyay.

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Qld lifts pokies ban on big notes

Poker machines in Queensland's pubs, clubs and casinos will now accept notes bigger than $20. Source: AAP

INCREASING the value of notes Queensland's poker machines can accept is a bad move that will escalate problem gambling, critics say.

For the past 12 years, electronic gaming machines in the state's pubs, clubs and casinos were restricted to accept nothing larger than $20 bills.

Queensland Attorney-General Jarrod Bleijie has approved a change to allow $50 and $100 notes.

The move, lobbied by major casino owner Echo Entertainment, was condemned by charities and counselling services, which say it will have a negative effect on problem gamblers.

Deputy Opposition Leader Tim Mulherin says the government's own discussion paper on lifting the restriction identified that limiting the size of notes to $20 prevented gamblers from making "large spontaneous bets".

A state government discussion paper in February also said the note-size limit was reviewed in 2003, Mr Mulherin said.

"That review found the policy was working and had succeeded in 'adjusting the behaviour of people who were at risk of developing a gambling problem'."

He accused the government of giving in to the gambling industry.

"The slipshod process for deciding on new casino licences is proof of that," he said.

"Even before any community consultation has been undertaken, the government has decided new licences will be available just because groups like the James Packer-led Crown casinos want one."

Premier Campbell Newman says the poker machine changes will have little effect on problem gamblers.

"This is a change about the notes you can use - no changes to the limit," he said.

"There's a $100 limit, which puts a real lid in terms of problem gamblers."

Mr Newman says the limit in NSW is $10,000.

"We've got some tight controls here and we haven't slackened them off."

The lifting of the ban on $50 and $100 notes was among recommendations by a government-appointed expert panel that reviewed the state's gambling laws and policies.

Controversial proposals being considered include doubling the maximum of each poker machine bet to $10 and allowing gaming at pubs and clubs before 10am.

The government is expected to release its full response next year.

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Eight more dead in Bangladesh riots

10 people have been killed in Bangladesh's violence over the execution of an Islamist party leader. Source: AAP

EIGHT more deaths were reported in Bangladesh in intensified riots and protests sparked by the execution of a top Islamist leader, as the prime minister warned of a crackdown on the violence.

Police said Islamist supporters torched houses and fought running street battles with officers in towns and cities during a third day of unrest over the execution of Abdul Quader Molla for war crimes.

Two people were killed on Sunday in the northern town of Patgram and another six elsewhere overnight, police said, as Islamist supporters enforced a nationwide strike over the execution of Molla, a senior leader of the Jamaat-e-Islami party.

"Police fired shotgun pellets to disperse the Jamaat protesters who torched at least 20 houses belonging to ruling party supporters," government administrator Habibur Rahman told AFP of the violence in Patgram.

Molla's hanging on Thursday night triggered fresh unrest in the impoverished country, already reeling from political violence in the build-up to a deeply divisive national election scheduled for January 5.

Twenty people are now known to have died and dozens more have been injured in the clashes since Thursday between outraged Jamaat activists and police and between the activists and supporters of the ruling Awami League.

Prime Minister Sheikh Hasina warned of strong action against the rioters, saying "we have shown enough patience. We will not tolerate anymore."

"People of the country know how to reply to these atrocities (the latest violence), we (government) also know how to respond to, control you (the rioters)," she told a rally late on Saturday to commemorate those killed in the 1971 war of independence from Pakistan.

Molla, 65, became the first person to be executed for his role in that war. Jamaat called the hanging a "political murder" and said it would avenge it.

Molla had been found guilty in February by a much-criticised domestic tribunal of having been a leader of a pro-Pakistan militia that fought against the country's independence and killed some of Bangladesh's top professors, doctors, writers and journalists.

He was convicted of rape, murder and mass murder, including the killing of more than 350 unarmed civilians. Prosecutors called him the "Butcher of Mirpur", a Dhaka suburb where he committed most of the atrocities.

Of the six killed overnight, police said three died in the southern town of Companyganj, two in the northern town of Ramganj and one in the coastal town of Laxmipur.

At Companyganj, an opposition bastion, police fired rifles to disperse at least 8,000 rampaging Jamaat supporters who torched four government offices and attacked officers with crude bombs and guns, a senior police officer said.

In Ramganj, activists of Jamaat and its main ally, the main opposition Bangladesh Nationalist Party, attacked a convoy of ruling party lawmakers, leaving two people dead, sub-inspector Ershadul Alam told AFP.

Molla was one of five Islamists and other politicians sentenced to death by the International Crimes Tribunal, which the opposition says is aimed at eradicating its leaders.

The sentences have triggered riots and plunged the country into its worst violence since independence.

Some 250 people have now been killed in street protests since January, when the first verdicts were handed down.

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Red-suited revellers hit NY bars

The costumed New York pub crawl known as SantaCon has seen thousands of Santa's partying in bars. Source: AAP

SANTA Claus came to town despite snow and widespread criticism of the costumed New York pub crawl known as SantaCon.

New York City's SantaCon started on Saturday morning in Tompkins Square Park in the East Village. Thousands of red-suited revellers then spread out through the city's bars and snowy streets.

This year's SantaCon takes place in New York amid criticism that the event has become too rowdy. SantaCon participants were told to make charitable donations and encouraged to bring small gifts to bestow on one another and passers-by.

Organisers say similar events were set for more than 100 other cities worldwide on Saturday, including San Francisco; Portland, Oregon, Newport Beach, California and Vancouver, British Columbia.

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